Bulls in GBPUSD are targeting 1.4111 and 1.4137, but the likelihood of a correction is growing

Paying attention to the 4-hour chart, you will notice that:

  • at the auction last Friday, the breakdown of the strong resistance level 1.3914 led to a significant increase in bullish sentiment, and the development of our targets (1.39385, 1.3964 and 1.40025) ended at the end of the American session; in terms of fundamental analysis, the noticeable weakening of the US dollar (USD) was caused by the shockingly weak employment growth in the United States,
  • since the beginning of the current day, bullish sentiments also dominate in the GBPUSD currency pair,
  • there are no significant visible resistance levels.

Now let’s look at the indicators:

  • The exchange rate has significantly moved away from the moving averages with periods of 89, 55, 34 and 144, which are a number of support levels 1.3909 / 08/06 and 1.3856.
  • The MACD histogram is still in the positive area and is already above its signal line, continues to rise rapidly and thus gives a signal to buy the British pound (GBP).
  • Stochastic Oscillator is in the overbought zone and is giving a similar signal, as the% K line rises above the% D line.

Therefore, we expect that the growth of quotations may continue, and the potential targets of the bulls are located at 1.4111 and 1.4137.

At the same time, it should be borne in mind that a noticeable overbought British pound (GBP) increases the likelihood of the beginning of a correction, the targets of which may be the levels of 1.40025 and 1.3953.

Resistance levels: 1.40485, 1.4060, 1.4111, 1.4137

Current price: 1.4047

Support levels: 1.40245, 1.40025, 1.3981, 1.3953

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